Funny thing just happened. I got an email from Actiontec support. They said I needed to check the VPI and VCI values and make sure it's set to 0/35. I went to the advanced setup page, changed the numbers and now the darn thing is working! I swear I did that when I was troubleshooting. I'll run the actiontec for a few days and if i don't have any more connectivity issues the att modem is going back.

*Michael*
AV123 Refugee - X-LS Encore, X-Voce, X-Omnis, Elt-Dpa's
Denon AVR-591
Magnavox NB500MGX BDP